Europe's Lost Generation

While many economic experts have focused on the Greek debt crisis and the futureof the euro, the plight of unemployed youth in Europe has received less attention.

by Paul Kieffer
June 29, 2011

Young Spaniards camp out in Madrid's main
square to protest against high unemployment.

Hundreds of young Spaniards began a
three-week protest in mid-May at Madrid's Puerta del Sol plaza.
With a play on the words of U.S. President Barack Obama’s
election campaign slogan, the young protestors proclaimed,
"Yes, we camp!"

The city-center campout was a demonstration against high
unemployment among Spanish youth and the Spanish government's
response in the last two years to the worldwide financial
crisis. More than 45 percent of job-seeking Spaniards under the
age of 25 are unemployed, the highest level of unemployment
among young people anywhere in the European Union. In fact,
according to United Nations statistics, the average level of
youth unemployment throughout the rest of the world is about 13
percent – Spain's being more than triple that. It is no
wonder that the International Monetary Fund (IMF) has
characterized Spain's young unemployed as the "lost
generation."

The protest in Madrid served notice on Spain's political
leaders and union representatives that frustration among
Spanish youth is slowly turning to anger. Prior to last month's
demonstration, things had been quiet in the country's cities
for months despite high unemployment. Young job seekers in
Spain are challenged by the reluctance of employers to offer
them regular employment with the accompanying benefits that
their colleagues with seniority enjoy. Instead, they are given
short-term contracts without severance benefits, making them
the first ones to be laid off in any economic downturn.

Spain's government can offer little hope of relief or
improvement for the hordes of young unemployed Spaniards. The
Spanish economy is still suffering the after-effects of its
housing industry having gone from boom to bust. The country's
own debt crisis means billions of euros in budget cuts to
position itself for any emergency loans that might be needed in
the future from other eurozone members and the IMF.

The demonstration in Madrid prompted similar protests not
just in other Spanish cities, but in other EU countries as
well. What impact might this ultimately have?

Europe's youth unemployment problem

While Spain holds the dubious record of the highest youth
unemployment rate in Europe, the "lost generation" of
unemployed youth is expanding throughout the Continent.
Currently, 19 of 27 European Union members have a youth
unemployment rate exceeding 20 percent. There are only three EU
countries where the youth unemployment rate is less than 10
percent: Germany, Austria and the Netherlands. In other words,
youth unemployment is not only a problem for EU countries
viewed as weak economically, like Greece, Lithuania and Latvia,
but even for industrialized nations like France and Italy.

It's only a matter of time before Europe will pay dearly for
the lost generation's missing contribution to the European
economy. Without regular income these young people will not
contribute as consumers to the normal economic cycle. With no
income they will not be paying taxes and helping to reduce
their country's fiscal problems, and they will be a drain on
unemployment and welfare funds instead of contributing to them
through their earnings.

Then there is also the aspect of mental and emotional
well-being for those who experience long-term unemployment or
fear losing their jobs. According to Dr. Matthijs Muijen of the
United Nations World Health Organization in an interview with
Britain's Public Service Review: "Employment is a very
powerful predictor of depression and anxiety. Unemployment
poses the risk of poverty and leads to individuals losing
social connections and feeling marginalised. At the peak of the
economic crisis, people were very fearful, which led to a
change in behaviour; they were loathe to take sick days and
were going into work even if they were ill" (June 13,
2011).

Depression and anxiety are not the only reactions to
unemployment. When young French protestors gathered in May at
the Place de la Bastille in Paris to sympathize with Spanish
youth demonstrating in Madrid, anger and frustration were
evident, prompting Süddeutsche Zeitung (Germany's
largest national subscription newspaper) to wonder whether the
recent angry protests in North Africa had boiled over into
Europe. "Our goal is a world revolution," was how one of the
French demonstrators described the protest (May 31, 2011).
Calling themselves the "Indignant Citizens," their protest was
directed against the fruits of the Western capitalist
system.

Using social media like Facebook and other websites, the
"Indignant Citizens" quickly organized similar demonstrations
in Lisbon, Budapest, Athens and Berlin. The brunt of their
wrath was directed at budget cuts and a perceived unfair
distribution of wealth. French foreign minister Alain
Juppé admitted that the "unbridled greed of the rich"
and the growing needs of the poor were fueling the perception
of injustice (ibid.).

Unfortunately, it seems that European and world economists
have little hope of reducing Europe's growing army of the young
unemployed. A New York Times article by Nobel
Prize–winning economist Paul Krugman quotes the secretary
general of the 34-nation Organization for Economic Cooperation
and Development (OECD) as stating, "The room for macroeconomic
policies to address these complex challenges is largely
exhausted" (May 29, 2011). Krugman himself says: "On both sides
of the Atlantic, a consensus has emerged among movers and
shakers that nothing can or should be done about jobs. Instead
of a determination to do something about the ongoing suffering
and economic waste, one sees a proliferation of excuses for
inaction, garbed in the language of wisdom and responsibility"
(ibid.).

The potential for radical change

So far Greece is the only country where recent protests over
unemployment and austerity measures have turned violent. A
report from the German Press Agency (Deutsche Presse-Agentur)
described the scene in Athens at the beginning of June:

"Resistance is also coming from the 'Indignant Citizens,' a
protest movement organized on the Internet. It has occupied
Athens' main square in front of parliament every evening for
almost the last two weeks, demanding a type of 'direct
democracy.' Members of parliament are called 'thieves and
traitors' and are spat upon, called names and on occasion
become the target for stone-throwers. The crowd is mixed, and
the mixture is highly explosive. The anti-system group
dominates part of the square, along with unemployed people and
their families, members of the political opposition,
disappointed socialists, monarchists, housewives who bang on
their pots, students and university graduates who have no hope
of finding a job. The extreme right is also represented,
occupying a corner of the square right in front of parliament.
There are fears that the slightest incident could ignite an
explosion" (June 5, 2011, translation ours).

The head of the Greek Orthodox Church, Archbishop Ieronymos,
said the financial crisis provided Greece an opportunity for
change but not, he warned, "that we destroy ourselves"
(Kathimerini, June 5, 2011).

The "Indignant Citizens" movement of recent weeks has
demanded not just an end to high unemployment, but also an
overhaul of the European political system, which is viewed as
incapable of solving current problems.

Germany's experience with right-wing extremism offers an
interesting insight into the attractiveness of fringe
movements. In recent years Germany's three extreme right-wing
political parties have had their biggest electoral successes in
areas where unemployment is well above the national average. A
study conducted two years ago by the Department for Medical
Psychology and Sociology at the University of Leipzig concluded
that unemployment was a motivating factor for male voters in
deciding to vote for one of the three parties. Of those
surveyed, one third who voted for an extreme right-wing party
were unemployed, and other voters listed fear of losing their
job as a reason for choosing a right-wing party. The survey
also revealed that the majority of respondents who voted for
right-wing parties were from low-income households.

With experts predicting that Europe's unemployment malaise
will last for years, the potential is very real that
disaffected youth may embrace alternative solutions rooted in
political extremism that offer radical change in a crisis
situation.

Where is this headed?

Will history repeat itself? Will Weimar be the model for
Europe? The last years of Germany's post–World War I
Weimar Republic were plagued by high unemployment. When
unemployment reached about 35 percent, Germany got a new
chancellor who promised to solve the unemployment problem. His
name was Adolf Hitler.

While disturbing to contemplate, this should come as no
surprise to students of Bible prophecy, who await the coming
rise of a new dictatorship in Europe following a long
tradition. This leader and his empire, both referred to in the
book of Revelation as "the beast," will plunge the world into
its darkest period. (For much more on this, see the
March-April 2010 issue of "The Good News" magazine.

But that's not the end. Thankfully, evil will be vanquished,
the darkness will be lifted, and the problems of this age will
be solved the right way. The Bible shows that a time is coming
when the youth of all nations – and older folks too, for
that matter – will not have to deal with the
uncertainties of today's world. Jesus Christ has promised to
return to restore equity and justice so that all, starting with
the people of Israel, may live in peace and enjoy the security
of homes and long-term employment. I recommend the free
booklets You Can Understand Bible
Prophecy and The Book of Revelation
Unveiled, both available free of charge upon
request.